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Tenancy Agreement Template for Indonesia

An Indonesian Tenancy Agreement is a legally binding contract governed by Indonesian civil law that establishes the terms and conditions for the rental of property within Indonesia. This document outlines the rights and obligations of both landlord and tenant, including rent payment terms, duration of tenancy, maintenance responsibilities, and conditions for security deposit return. It must comply with the Indonesian Civil Code (KUHPerdata) and relevant local property regulations, while addressing specific requirements for both residential and commercial properties. The agreement includes provisions for dispute resolution and termination conditions in accordance with Indonesian legal requirements.

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What is a Tenancy Agreement?

The Tenancy Agreement serves as a crucial legal document in the Indonesian property market, used whenever a property owner (landlord) agrees to rent their property to a tenant. This document is essential for both residential and commercial property rentals in Indonesia and must comply with the Indonesian Civil Code (KUHPerdata) and relevant property laws. It provides comprehensive coverage of rental terms, including payment schedules, maintenance responsibilities, and termination conditions. The agreement protects both parties' interests by clearly defining their rights and obligations, while ensuring compliance with local regulations and property laws. It's particularly important given Indonesia's specific requirements regarding property rental, especially concerning foreign tenants and commercial use restrictions. The document should be prepared with consideration of both national and regional property regulations, making it suitable for various rental situations while maintaining legal compliance.

What sections should be included in a Tenancy Agreement?

1. Parties: Identification of landlord and tenant with complete legal names, addresses, and identification numbers as required under Indonesian law

2. Background: Context of the agreement and brief description of the property being leased

3. Definitions: Definitions of key terms used throughout the agreement

4. Property Details: Detailed description of the rental property, including address and specific unit information

5. Term of Lease: Duration of the lease, including start and end dates, and any renewal options

6. Rent and Security Deposit: Rental amount, payment terms, security deposit details, and payment methods

7. Utilities and Service Charges: Responsibility for utility payments and other service charges

8. Use of Property: Permitted use of the property and any restrictions

9. Maintenance and Repairs: Responsibilities of both parties regarding property maintenance and repairs

10. Rights and Obligations: Detailed rights and obligations of both landlord and tenant

11. Insurance: Required insurance coverage and responsibilities

12. Termination: Conditions and procedures for early termination of the lease

13. Governing Law: Specification of Indonesian law as governing law and jurisdiction

14. Dispute Resolution: Process for resolving disputes between parties

15. Notices: Method and addresses for official communications between parties

16. Execution: Signature blocks and execution requirements

What sections are optional to include in a Tenancy Agreement?

1. Furniture and Fittings: Detailed terms regarding furnished properties, to be included only if property is rented with furniture

2. Subletting: Terms regarding subletting rights, if permitted

3. Pets: Rules regarding pet ownership, if relevant

4. Building Rules: Specific rules for apartment or managed buildings, included only for such properties

5. Commercial Use: Additional terms for properties permitted for home-business use

6. Foreign Tenant Provisions: Special provisions required for foreign tenants under Indonesian law

7. Force Majeure: Provisions for extraordinary circumstances affecting the tenancy

8. Property Modifications: Terms regarding permitted and prohibited modifications to the property

What schedules should be included in a Tenancy Agreement?

1. Schedule 1 - Property Inventory: Detailed list of furniture, appliances, and fittings included in the rental

2. Schedule 2 - Property Condition Report: Detailed description of property condition at commencement of lease

3. Schedule 3 - Building Rules: Copy of applicable building or complex rules and regulations

4. Schedule 4 - Payment Schedule: Detailed breakdown of rent, deposit, and other payment obligations

5. Schedule 5 - Maintenance Schedule: Schedule of regular maintenance tasks and responsibilities

6. Appendix A - Floor Plan: Floor plan of the rental property

7. Appendix B - Photographs: Dated photographs of property condition

8. Appendix C - Required Permits: Copies of relevant permits and certificates

Authors

Alex Denne

Head of Growth (Open Source Law) @ tiktok成人版 | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents

Jurisdiction

Indonesia

Document Type

Rental Agreement

Cost

Free to use

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